Member Article

Why it’s important to have professional indemnity insurance for IT contractors

As more and more professionals have decided to work as independent contractors than choose to work in long-term roles for organizations, the importance of professional indemnity insurance for contractors has been on the rise. it is important that everyone considering becoming contractors gets all the essential details about the professional indemnity insurance.

It is imperative to understand that IT contractors have to face a whole lot of risks that are less obvious when compared to many other contracting jobs. Even though the risks are not very obvious, the magnitude of the risks can be really devastating.

Hence, consider the following factors to understand why you needprofessional indemnity insurance for contractors, at all.

• No contract without insurance cover: Some of the contracts when you trying to get them, require the contractor to have the professional indemnity insurance for contractors. This ensures the business that you are capable of meeting the liability if any unpleasant things happen.

• Claims have the potential to bankrupt contractors: As far as indemnity insurance claims go, most have the potential to make any contractors bankrupt. So it is only befitting and wise that you take all the necessary steps to ensure the safety of yourself and your reputation from being tarnished.

**• Mistakes tend to happen: **It must be taken into account that even when you have enough and more care taken to ensure that there are no mishaps happening, mistakes can happen. This can potentially bring issues that may even affect your contracting services. To avoid this, it is vital that you have all the necessary steps taken including the professional indemnity insurance for contractors as a false-proof system in place.

• Insurance from employment agencies isn’t enough to cover you: There are employment agencies helping you find your next contract; they also tend to have an insurance cover. However, most of the times, their insurance coverage will not be enough to cover your liability. So, you must have professional indemnity insurance for contractors to ensure that you are covered in case of any mishaps.

• Protect you from the unforeseen: Whenever you are acquiring a contracting work, there will be always be a risk. Sometimes it can be things that you may not even consider to happen. However, it is always best and wise to ensure that you have everything to protect you from such liabilities, whatever the scope of your contracting work is.

Since the whole affair of professional indemnity insurance for contractors is a very serious issue, it is highly imperative that you get all the help you need while trying to get the same thing done for you. Getting the help from a professional and experienced accounting firm can ensure that you get the best services just the way you need.

This was posted in Bdaily's Members' News section by Vidit Agarwal .